Answered step by step
Verified Expert Solution
Question
1 Approved Answer
chegg.com Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs.
chegg.com Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The following information was for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $9,000 Work-in- process (All Job X) 37,400 Finished goods 80,400 Materials purchases $125,000 Direct materials requisitioned Job X $54,500 Job Y 40,000 Direct labor hours: Job X 5,000 Job Y 4,500 Labor costs incurred: Direct labor ($6.00 per hour) $57,000 Indirect labor 16,200 Labor costs incurred: Direct labor ($6.00 per hour $57,000 Indirect labor 16,200 Factory supervisory salaries 7,200 Rental costs: Factory $8,400 Administrative offices 2,200 Total equipment depreciation costs: Factory $9,000 Administrative offices 1.900 Indirect materials used $14,400 The underapplied or overapplied overhead for September is: $2,750 underapplied. $2,750 overapplied $920 overapplied $920 underapplied $1,450 underapplied
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started